Flying Colors, Chasing Momentum
Key Takeaways :
▪️AVIA's 4Q23 net profit accumulated to IDR501.9 bn, growing by +50.4% QoQ, thus leading to double-digit growth for FY23 by +17.3% YoY to IDR1.6 tn. The higher-than-expected net profit in FY23 was mainly driven by lower input costs.
▪️We hosted the MNC Sekuritas Corporate Forum 2024, during which AVIA sees a 6%-10% YoY rise in sales value and a 4%-8% improvement in volume for FY24E. AVIA also typically adjusts their ASP by 1%-2% annually. As of 2M24, volume growth remains on track at around mid-single digits.
▪️We see potential upside risk for AVIA in 1H24. Notably, BPS reported that inflation in residential building material prices, as well as household equipment and routine maintenance continues to decline, reaching +0.7% YoY/+1.1% YoY, respectively in Feb-2024.
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